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News Analysis: Apple Business Essentials Simplifies SMB Ownership Experience

News Analysis: Apple Business Essentials Simplifies SMB Ownership Experience

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Apple Business Essentials 

Apple Launches New Business Essentials Service

Apple Business Essentials

Source: Apple

On Wednesday, November 10th, Apple introduced a new business service for companies up to 500 employees. Apple Business Essentials enables organizations to easily add users, onboard users, back up information, secure devices, receive 24/7 support, repair devices onsite, and manage the device lifecycle for deployment.

A new feature known as Collections enables easy configuration of settings and apps for the Individual user, group, and/or device level. Further, IT personnel can automatically push Wifi passwords, VPN settings, and make downloaded apps available to employees who sign in to a personally owned or corporate devices.  As a result, this new service makes it possible for organizations to enforce security policies and critical security settings such full-disk encryption, privacy of personal and work data, and the ability to lock out lost or stolen devices. In conversations with technology executives with Apple shops, they are looking forward to the 4-hour or less onsite repair capabilities starting with the iPhone.

Apple is offering three Business Essentials plans that vary by number of devices and amount of storage (see Figure 1).  Organizations can also add optional AppleCare+ to their existing plans.

Figure 1. Three Levels Of Apple Business Essentials Pricing Reflect Usage Based and User Based Pricing

Apple Business Essentials Pricing

The Bottom Line: Apple Just Made Managing And Securing Devices Much Easier For SMBs

Technology executives in the mid-market face constrained staffing and seek ease of use in adding and on-boarding users and devices; while enabling flexible technology choices amidst growing security threats.  The Apple Business Essentials service offering makes it easy to allow SMBs to scale. 

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Catching Up with Omnichannel: It Isn’t Where (or What) We Thought It Was

Catching Up with Omnichannel: It Isn’t Where (or What) We Thought It Was

The time has come to recenter our attention and our intention when it comes to omnichannel. We’ve been chasing omnichannel for what feels like decades, repeating an exercise in pushing everywhere yet engaging nowhere. After such a long journey, the idea of even catching up with the expectations of the omnichannel customer can feel overwhelming.

To break this down into a more actionable conversation, I propose starting by admitting what omnichannel is not: Omnichannel is not a destination. It is less about the technical specifications of the various channels of engagement and more about the customers’ decisions about where to engage in their micromoments of need.

Conversely, what is omnichannel? Omnichannel is a promise and expectation. Omnichannel is bidirectional exchange of value. Omnichannel is an agreement between the buyers of services and the providers of those services on what, when, and how value will be exchanged—and that agreement is redefined and reimagined with every engagement.

It is also time to reset and even reimagine what omnichannel can be—and in some cases, already is. Let’s consider an example: the new face of commerce. The COVID-19 pandemic’s brute-force acceleration of digital commerce innovation catapulted consumers from pushing a shopping cart down the aisles of a grocery store to curb-side pickup and home delivery.

The lines that traditionally segmented B2B and B2C buying experiences into neat categories were upended, blurred, and in some cases completely redrawn, thanks to increased direct-to-consumer (D2C) interactions. Everyone started to rethink and reimagine how life around us actually operated, and then expected technology to bridge the gaps between need and possibility. Entire segments of retail, food service, and even grocery launched mobile and digital experiences enabling online shopping with a choice of curbside pickup, in-store pickup, or delivery.

The Ebb and Flow of the ‘New Normal’

We are also facing the reality that every day seems to breed a new business model or a new challenge to “normal” operations. Take the challenge facing airlines: Under normal circumstances, pricing models were based on historical data, leveraging years of “normal” to best predict and set pricing to achieve optimal revenue. But what happens when historical norms get thrown out the window? There was no historical data that could fit the new normal of pandemic travel. Pricing and the process for predicting pricing models needed to shift, and airlines leveraging platforms that could aggregate known behavioral and event data to predict and optimize price and promotions on the fly (no pun intended) won the trust of the business for optimizing revenue and the trust of the customer for optimizing value.

In B2B, the very concept of what an “experience” should be was quickly being replaced with expectations molded thanks to distinctly B2C experiences. It wasn’t just that the channels of how transactions unfolded were reimagined—entire business models were transformed, demanding new, flexible options for configuring, transacting, and deploying them.

If groceries could be ordered online and delivered, why couldn’t business materials and needs? If toilet paper could be purchased via subscription, why couldn’t training, service, or insurance? If the price of a first vacation could be optimized for both traveler and airlines, why couldn’t the price of software platform configurations similarly evolve?

Remembering the Lessons Learned

The pandemic forever changed the expectations for how service and value could be delivered. It forever changed the speed at which business models could transform and shift. And once the pandemic fades into history, the expectations for value, service, and flexibility will remain. Thanks to the past year, key lessons were learned (often by “failing forward”) that should be carried into this new age of reimagined omnichannel commerce.

  1. Omnichannel is about being omnipresent, not about replicating actions in every channel. Relationship advice usually includes these words of wisdom: Show up, be present, and listen more than you talk. This is as true for relationships with commerce as it is for relationships of the heart. Today’s commerce expectation is not to shout loudest (or have the wildest booth on the tradeshow floor) to lure customers into the channel of an organization’s choosing. Omnipresent commerce is about showing up and being present in the moment the customer is defining. This raises a demand for signal intelligence to understand needs and behaviors—something that will get exponentially more challenging and complex as new channels of engagement enter the journey.
     
  2. Channel boundaries don’t hold back commerce anymore. Operational boundaries still do. As routes to market shifted, the boundaries between operational systems and functions became glaringly obvious. As digital commerce experiences allowed customers to leverage tools such as configure, price, quote (CPQ), the operational barriers that blocked accurate and timely inventory or distribution intelligence became operational obstacles to delivering new and valuable digital experiences. Channel prioritization based on team or personnel preference—as opposed to channel prioritization based on a customer’s personal preference—can be addressed when artificial intelligence (AI) and machine learning (ML) tools work to identify the right channel for the right selling experience. Early thinking regarding omnichannel commerce assumed that all channels were created equal—and valued in equal measure by the customer. Nothing could be further from the truth. If operational boundaries and roadblocks are left in place (or even worse, fortified by inaction), seeing and managing what doeshappen within a channel will be impossible.
     
  3. Crisis bred innovation—and now it needs to give way to purpose. In a time of extreme commerce emergency, the innovations in how to approach channels of engagement and the changing mechanics of how work gets done—to push the boundaries of where and how actions, content, engagement, and transactions could happen—were met with little resistance. We needed to do or try something. But in a post-pandemic environment, we will need to stop asking what the “new-normal” could be and just accept that new is normal. To meet the needs of customers on their own journeys, selling organizations need more than the permission to sell differently: They need tools to meet the customer where the customer chooses, with exactly what the customer wants and needs. This is where AI can take the lead in a meaningful way. By looking beyond simply automating sales tasks, an AI-powered selling motion can more effectively deliver consistent and personalized experiences, delivered via valued channels and contextualized for the individual buyer.
     
  4. Centralization is key. The reality is that for most organizations, we have the channels our customers value and utilize most frequently already in place. The hurdle that must be addressed is how and where operational centralization needs to happen to make the biggest shifts in how quickly and easily our selling experiences can align to the new self-reliant digital buyer. Centralization doesn’t apply just to the data that powers experiences. It also applies to the platforms. It is easy to simplify the silos that stymie selling as being cultural or functional disconnects. It is time to admit that interconnected platforms have a direct impact on the capacity to connect and align operational processes. If the goal is to optimize revenue by tapping into the power of omnichannel engagement and selling, an interconnected platform can help B2B organizations to purposefully shift from siloed and disconnected selling processes.
     
  5. This isn’t just about the buyer: Modern omnichannel commerce impacts our selling teams, too. Expectations for how fast things come together have changed—partially because of the expediency of the very digital channels and experiences we put into play out of pandemic necessity. Whereas customer relationships between sellers and buyers will always be impacted by those handshakes and face-to-face meetings, the expectation for detail and data at the snap of a finger is here to stay. Sellers don’t have the luxury of having a week to pull pricing and quotes together: They will have moments to meet the needs of the customer. The biggest question of all for organizations wanting to fully lean in to the momentum that transformation has unleashed on commerce is, Are we ready to empower our employees as much as we are willing to empower our customers? This is a new era of selling in which success (and growth) will hinge on eliminating the barriers and roadblocks between sales, commerce, and customer. It’s time to give our teams of sellers access to the easy button so they remain a valued channel of engagement by the customers who still rely on that relationship to see them through their journeys.

The time for questioning whether omnichannel is the right path has passed. The reality is that the customer is already well down that road, setting expectations and resetting buying norms. Once we rethink omnichannel, we can actually prepare for what comes next: the onset of the “metaverse”—that not-so-distant future of shared, connected, virtual spaces and persistent experiences across a self-defined and self-perceived virtual universe. And in the metaverse, customers won’t need to wait for organizations to get up to speed with their expectations. They will have already moved on to engage with an organization ready to meet their needs.

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HOT TAKE: Zendesk Reshapes View of Customer with Momentive Pickup

HOT TAKE: Zendesk Reshapes View of Customer with Momentive Pickup

It’s official: The Monkeys ARE running the billion-dollar-zoo. Zendesk, a leading customer service and sales engagement solution, has announced plans to pick-up Momentive, the parent to the research and survey disruptor of the 2000’s, SurveyMonkey, for a cool $4.13 Billion. This after the other marketing-monkey, MailChimp, a company of no relation and in a totally different space, was picked up by Intuit for $12 Billion this past September.

While the two primate companies couldn’t be more different, the near-term value for Zendesk and Intuit feet the same: access to new customers to boost revenues. For Zendesk, this near-term motivation is laid bare in the second subhead of their press release: “Combination expected to be growth accretive by 2023 and accelerate Zendesk’s revenue plan to $3.5 billion in 2024.”

It doesn’t get spelled out much more clearly than that. But it’s the long-term vision that has me most intrigued. Zendesk intends to become a “Customer Intelligence” company, and I think they’ve got a pretty good shot.

From the start, Zendesk has been focused on capturing the moments that matter most to a customer—those moments when customers are in need of answers or in need of help. What started as tools for customer service agents to more easily engage with customers has evolved into a comprehensive and predictive platform to bring sales and service closer to the true need, and perhaps even voice, of the customer. For sales and service teams, the Zendesk platform can provide immediately actionable customer understanding in every engagement, including automating next best actions like relevant content delivery or sales follow-ups.

Over the past several years Zendesk has intentionally invested, be it through targeted acquisitions like Smooch (2019) and Cleverly.ai (2021) or through its own innovation and platform advances, in solutions and tools to help organizations be better at having focused, valued conversations with customers. Zendesk has worked to make an organization’s people more productive and effective at conversing with their customers, especially when that means empowering the end customer to help themselves.

So it isn’t that much of a leap to see why Zendesk would start shopping for a means to pull voice more directly into the conversation. With Momentive, Zendesk isn’t just picking up SurveyMonkey, but a slew of smaller pickups along the way that intentionally build broad feedback loops between organization, digital product and customer. This pick up allows an organization to amass a customer-voice-driven profile that is rich with behavioral intention and direct high-fidelity signal from customer feedback…now native (once integrated) to the platform their teams are using to actually engage in sales and service conversations.

And this, at least in my wild world of CX, is where Zendesk has a real opportunity: To connect the dots between a customer’s interaction with an organization and their feedback on how those experiences have landed in one aggregated pane of intelligence and understanding. Today, the intelligence about the customer has been segmented across moments of discovery (largely driven by marketing), moments of opportunity (largely driven by sales), and moments of requirement or need (largely driven by service and support).

These moments, and the rich intelligence they can deliver back to the organization, are too often relegated to the tools and systems they have been collected in. Zendesk has a chance to flip that script by intentionally collecting those signals and feed them back to the front line of customer experience delivery. Today, that front line impacted by Zendesk is largely a sales and service driven picture…but I doubt the company has any intention of limiting their scope there.

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The Strategic New Digital Commerce Category of Product-to-Consumer (P2C) Management

The Strategic New Digital Commerce Category of Product-to-Consumer (P2C) Management

The world of digital commerce has grown in leaps and bounds over the last two and a half decades, from quite modest beginnings to an astonishing $4.2 trillion in global revenue this year. In all ways that it matters, from wide product availability and deep consumer uptake to operational complexity and business sophistication, e-commerce has become a vast industry that powers much of the world of retail consumer sales today.

However, along with this maturity has become ever-growing overhead in time, resources, and management attention on making the many moving pieces -- product catalogs, commerce systems, feeds, channels, and marketplaces -- fit together and properly operational in a way that is truly sustainable as a business.

Related Research Report: P2C Management

The Three Major Layers of Product-to-Consumer (P2C) Management for Digital Commerce

Along the way a number of product categories have attempted to alleviate the many individual challenges of building and running an e-commerce business. Product information management (PIM) tools made product feeds/catalogs more manageable. The power of enterprise resource management (ERP) platforms were brought to bear on tracking the e-commerce supply chain. Experience management platforms were acquired to provide better buying journeys. Customer and master data (CDP, MDM) tools were used to sort out the torrents of product and customer data flying through a ever-greater number of feeds, channels, and marketplaces. Marketing and advertising services were used to maximize sales and product positioning. Workflow tools began to manage the synchronization of integrated systems.

Automation eventually moved from managing feeds and synchronization to silent governing and maximizing more strategic activities like campaign management, content enrichment, and ROI optimization. Then there was the cross-cutting concerns of running effectiviely across critical silos and boundaries such as different countries, multiple clouds, various local e-commerce platforms, multiple stores, many brands, and a multitude of currencies.

Modern Digital Commerce is About Taming Complexity

This then is the situation that digital commerce firms increasingly encountered in the 2010s: The sheer proliferation of data, channels, systems, and silos/boundaries. This includes managing the timely data flows between them, dealing with a constantly changing fabric of inbound and outbound systems, operational processes that made the most of such data, all sitting on top a large and unwieldy hub of core systems began to weigh on the growth and potential of many stories. 

Out of this, a few of the firms that specialized in helping organizations operate in this high velocity and turbulent environment began to offer more integrated solutions that began to create an overarching and holistic operational construct on top of this constant swirl of commerce technology and supporting processes.

After discussing these trends with those in the industry for a while and examining the resulting solutions, it began to become clear that a genuine new product category was emerging that sat an entire level above the rest of the e-commerce solution landscape.

Understanding the Holistic Capabilities of P2C Management

In short, P2C Management provides an entirely new high level abstraction for how a digital commerce ecosystem functions. Instead of manually having to operate the functional operations of digital product marketing and sales across hundreds of product feeds and hundreds more consumer touchpoints -- or even harder, effectively optimize and maximize the commerce outcomes in al lthese combination, the category of P2C Management provides a single and consistent way to do this. As my new report explores in much greater detail, the three main strategic functions that a P2C Management platform offers is:

  • Consumer reach: Real-time syndication to a very large number of consumer marketplaces with both marketing and advertising support
  • Commerce management and optimization: Enabling of the cross-platform operations and continuous automated improvement of a commerce business across myriad product providers and consumers
  • Product data ecosystem: Large-scale integration of product information sources such as sellers, vendors, and manufacturers

In my research, I've also uncovered ten candidate platforms that offer some subset -- and sometimes nearly all -- of these capabilities in a way that can provide a very substantial and strategic improvement to digital commerce operations and business outcomes. These solutions I've summarized in a new Constellation Research ShortList that was published separately today with the main research report that explores and describing P2C Management.

The current solutions for P2C Management that Constellation Research has identifed so far include offerings from Akeneo, ChannelAdvisor, Inriver, Pimcore, Productsup, Riversand, Salsify, Skubana, Syndigo, Webgility.

The formal high level defintion of the P2C Management category is as follows:

P2C Management solutions provide a systematic way of maximizing the total overall effectiveness of product information value chains. P2C almost completely automates the complex real-time flows of the key inputs and outputs of product information in an -commerce environment. Such solutions enable the strategic administration, management, and governance across an unlimited number of stores, catalogs, consumer touch points, product items, transactions, and buyers.

Successful P2C Management solutions optimize and maximize each element of the commerce ecosystem including content, marketing, advertising, pricing, campaigns, sales, testing, and fulfillment to maximize ROI and net profitability.

P2C is most effectively realized by a platform that is designed from the ground up to deal effectively with today’s hyperscale and deeply integrated commerce operating environments. Effective realization of P2C results in higher conversion, more revenue, larger margins, faster growth, more repeat sales, higher stock efficiency and larger customer lifetime value.

Introducing Product-to-Consumer (P2C) Management: A Strategic New Product Category for Digital Commerce from Digital Enterprise Today on Vimeo.

Developing the P2C Management Category

While few of these companies themselves yet identify themselves with this strategic new category, I am convinced it is the inevitable overarching future of digital commerce. The sheer complexity and unwieldy nature of operating today's contemporary e-commerce business through one of the aging, functionally partitioned, and siloed capabilities that it is composed of is no longer really possible. With none of the constituent parts of an integrated e-commerce operation offering a suitable home for overall management, operations, and governance, it is left to the solutions that are aimed at the whole picture, from data and systems, to products and consumers.

Thus, my research shows that the P2C Management category is becoming the new "top of the stack" of digital commerce, and will be one of the most important to watch as it evolves and matures through the 2020s. While this category is becoming necessary to become and remain an efficient and profitable e-commerce business at the higher end of the market, I do anticipate the democratization of the category as it become easier to integrate, learn, and adopt for less mature organizations. Nevertheless, the P2C Management market is already quite large, with a total addressable market of over $11 billion in 2021. I look forward to covering this space more closely as this emerging category expands and grows throughout the decade.

My Additional Research on This Topic:

P2C Management Report

The P2C Management Vendor ShortList for 2021

Realizing a Decisive Advantage in Digital Commerce Through Economic Flexibility

How Headless Revolutionized Content Management

The Future of Enterprise Content Management

A New Digital Experience Maturity Model for Improved Business Outcomes

How CXOs Can Attain Minimum Viable Digital Experience for Customers, Employees, and Partners 

To Strategically Scale Digital, Enterprises Must Have a Multicloud Experience Integration Stack

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How Tailored Experiences Deliver Efficiency and Productivity to Workers

How Tailored Experiences Deliver Efficiency and Productivity to Workers

Today’s technology-centric workplaces make it challenging for employees to quickly and effectively engage with common tasks in their work environment. It’s not that there is too much technology, but that it is situated in a way that lacks context and does not directly support the specific flow of work at hand.

In my research on digital employee experience, most digitally-enabled processes are built as functional silos. This means they don’t take into account the overall work experience or the other applications and channels that are used by the worker to complete a task. While it’s still challenging to design end-to-end digital experiences for general purpose knowledge workers, it’s become evident that the industry is closing in on solutions for semi-structured work for certain roles, such as call center operators or front desk workers.

In fact, I am seeing that more organizations than ever today are creating more tailored and customized employee experiences across channels and functions so that workers can focus on the work and not the underlying technologies. Organizations are doing this out of necessity to achieve certain needed benefits such as to reduce employee onboarding time, cut down on training, improve productivity, or reduce errors.

Where and How to Tailor Employee Experience for Better Outcomes

It turns out that one of the best places to guide and personalize the employee experience across functions and channels is in the collaboration tools that workers use daily. These are already the nexus for many key processes that involve more than a single person, and they are a natural location to bridge multiple channels and applications in the process as well.

Tailoring Digital Experiences for Workers Based on Context

Figure 1: How work events can be mapped to tailored experiences

For this tailoring of employee experience to work, however, it requires some adaptation to the process at hand. Relevant responses, including capabilities like auto-generated next best action, to important and/or common situations should be presented to the user when an appropriate situation occurs.  Contextually significant data should be filtered and shown in response to gating events in the worker's activities, such as which step should be performed next or who to hand the next step off to when it’s complete.

An Example of Tailored Experiences: 8x8 Frontdesk

A useful example of how personalized and contextual experiences can be provided to workers  to achieve the aforementioned benefits is with the new Frontdesk solution by cloud-based voice, collaboration, and customer engagement provider 8x8.

By entirely virtualizing the communications environment of the knowledge worker, a specialist contact center agent or front desk worker, Frontdesk provides businesses with the agility to dynamically assign roles to any user that is available and capable. This is an integral part of the software category known as eXperience Communications as a Service (XCaaS), which realizes an integrated cloud platform for contact center, voice, video, chat, and APIs. 8x8 Frontdesk is a new XCaaS composable experience aimed at the need for a dynamic receptionist solution for high-volume call handling. It consequently enables communication services to be available to anyone who can perform the work, from any location without special hardware.

Tailored Call Center Experience

Figure 2: How Frontdesk maps high frequency events to specifically tailored experiences

By completely virtualizing the call center worker or front desk operator, 8x8 Frontdesk extends their role to any user that is available and willing, as an integral part of their integrated cloud platform for contact center, voice, video, chat, and APIs. The solution is delivered entirely via software to anyone who can perform the work, from any location dynamically without special hardware.

What sets it apart from previous solutions is 8x8 Frontdesk offers a personalized solution for receptionists that is easily enabled in the same communications and collaborating app used across the entire organization, with centralized answering for both employee extensions as well as contact center agent user groups. Designed for a shallow learning curve aimed at speeding user adoption and time-to-value, the product provides contextual assistance with quick action icons for single-click call connections based on the caller and their likely destination, with pre-scripted greetings provided to the worker for the relevant inbound call. Voice and message-based call consultation capabilities are also provided that speed workers to the right internal contact.

The result is a solution that just about anyone can use with minimal training, maximum confidence in their actions, and significant efficiency boosts that greatly reduce time to task completion.

What Organizations Can Do To Maximize the Results of Tailored Experiences

While it’s helpful to have solutions that allow the tailoring in the first place, the key is to provision them upfront with data, filters, and contextually relevant content. Today, much of this setup is done in the solution design itself, freeing up the organization to deploy it seamlessly, as the use cases are already developed and realized with most of the tailoring already done for the situated work process. This enables organizations to outcompete using the strength of their customer/worker journeys.

The following should be considered by organizations to get the most from tailored experiences:

  • Specifically seek out solutions that realize tailored experiences at the junction between multiple people and systems. Collaboration scenarios such as call centers tend to have the most contextual relevant value that is easy to tailor repeatedly and reliably at scale.
  • Look for use cases in commonplace, high frequency collaboration scenarios that will deliver high ROI due to volume-based increases in speed, performance, reliability and reduced errors.
  • Test and validate the tailored experiences to ensure they actually deliver the benefits expected, configuring or customizing them as needed until the desired level of performance is achieved.

In today’s complex and high velocity workplaces, tailored experiences can deliver signal from the noise and ensure workers are a) focused on task , b) proactively enabled in their common processes, and c) able to quickly learn what they to do, deliver on it, and ensure the high quality of their resulting work activities. Organizations that seek to gain the highest performance for their digital workplaces will seek out solutions that contextually enable their workers, especially at the point of communications and collaboration, to carry out their activities with as much relevant, in-experience support and personalization to task as possible.

Additional Reading

Realizing a Decisive Advantage in Digital Commerce Through Economic Flexibility

Reducing Team Communications Silos to Rapidly Increase Usability, Adoption, and Lower Support Costs

The Crisis-Accelerated Digital Revolution of Work

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Realizing a Decisive Advantage in Digital Commerce Through Economic Flexibility

Realizing a Decisive Advantage in Digital Commerce Through Economic Flexibility

The stakeholders of today’s digital commerce and online shopping properties are currently afforded several significant growth opportunities, even in the face of today’s often uncertain times. That is, if they can successfully adapt to shifting online buying habits. The twin impacts of the pandemic and the resulting economic turbulence has indeed changed both consumer needs and perceptions.

These buyer shifts and the growth opportunity they represent are genuine and significant. For example, more consumers now shop online due to the pandemic according to United Nations Conference on Trade and Development data, with 3% overall growth globally from 2019 to 2020. This represents millions of new online buyers that can be readily tapped by those ready to meet their needs. Furthermore, as buying habits shift towards online, consumers may also be attracted to new digital experiences. This could quickly expand to buying experiences that weren’t considered online before, such as purchasing houses or using healthcare services.

The lesson: Those that adapted have tended to benefit most from these shifts. Yet, retailers have also encountered difficult economic times too, with sales having dipped measurably in recent months due to economic uncertainty. With a generally unclear sense of the near future, it’s certainly understandable that consumers may have interest in greater economic flexibility, such as more convenient payment options, from their preferred online shopping sites.

Solutions addressing economic objections directly in-channel have high appeal

The friction in the average digital shopping experience remains significant however, especially during the checkout process. In fact, today's e-commerce cart abandonment rate has risen to just over 70%, a rate it has remained at for years. This is because available means of payment or ease-of-credit-qualification has become a leading reason for cart abandonment. The latest data suggests that e-commerce sites seeking to reduce shopping cart abandonment must focus on reducing the friction directly in the payment process itself, where the main resistance tends to take place. This means e-commerce sites seeking to reduce shopping cart abandonment must focus on reducing the friction directly in the payment process itself, where the main resistance tends to take place.

Reducing abandonment of the typical e-commerce buying session has three primary solutions that can help reduce friction and increase successful conversions:

  • Easier navigation and user experience.  Usability is intrinsic to the digital commerce experience, but it can be time-consuming and costly to implement and test.
  • Just-in-time offers/coupons. Reducing the cost of the sales transaction is a key way to increase conversions, but negatively impacts margins.
  • Flexible payment options. Making it easier for shoppers to use services such as buy now and pay later removes friction with little effort or risk on the part of the e-commerce site.

The Shortest Route to Offering Economic Flexibility To Online Consumers

While online storefronts have numerous options to address cart abandonment and e-commerce friction in general, an easier way is simply to use available offerings provided by existing payment partners. Because these partners are likely already integrated into the e-commerce site, they can be quickly activated and used to help reduce buying friction. This in turn offers more payment options to buyers with the least amount of time and effort and can directly help reduce cart abandonment.

Almost all e-commerce sites already have trusted payment partners that have flexible payment options ready to turn on. These almost always offer the shortest time to value for site owners and operators. In fact, in my current analysis, new payment options from trusted partners are the fastest route to conversion growth and higher customer lifetime value (CLV.) That isn’t all: In my research into modern e-commerce payment solutions, I have found that more flexible payment options don’t just address cart abandonment, it has other downstream benefits as well.

Key Steps in Reducing Friction in the E-Commerce Customer Journey

Figure 1: Overall cost creates the friction in the online buyer journey

The key downstream benefits of high economic flexibility in the customer jouney are:

  • Customer retention/repurchasing. Shoppers who are given additional options to pay for their purchase tend to find the experience both helpful and rewarding and thus they tend to favor that site again says in-depth research.
  • Higher customer lifetime value (CLV). Existing customers will convert more often and for larger amounts when they are given access to economic flexibility. This increases the key metric of CLV, which is the gold standard for customer value.

The key to rapid and successful rollout of shopping options offering economic flexibility is the use of trusted partners, who consumers may recognize and be comfortable with from the start.

A New Industry Example of Economic Flexibility: PayPal’s Buy Now Pay Later Solution

PayPal has recently entered in the market with a major offering that provides consumers with a way to buy now and pay later with a very simple and straightforward process. Pay in 4 from PayPal lets consumers split their payments for an e-commerce transaction into 4 equal payments, one every two weeks, starting the day they make their purchase. Pay in 4 is interest-free, has no impact on a consumer’s credit score and is fully backed by PayPal’s well-known brand.

Pay in 4 is prominently offered through the regular PayPal payment option in existing sites, making it extremely simple to use. One click makes it easy for an online shopper to understand the terms and another click to agree to them.

PayPal Pay in 4 Buy Now Pay Later

Figure 2: Pay in 4 payment options are typically included in the existing PayPal checkout experience

A leading adopter of Pay in 4 is the well-known food shopping service, Omaha Steaks. Omaha Steaks sought to offer their customers flexible payment options and evaluated Pay in 4 as a primary solution. As a key step in the evaluation, they chose to A/B test the economic flexibility solution to ensure the results were net positive.

During the test, Omaha Steaks displayed dynamic messaging about Pay in 4 to 65% of their customers on both product pages and in their shopping cart. Within a few months, the company saw an increase in both conversion and Average Order Value (AOV). As a result, they decided to roll out Pay in 4 to 100% of their customers in March 2021. Pay in 4 has since cited a 10.4% increase in AOV for those that use it in their messaging in the cart to customers.

The best part is the overall effort to enable Pay in 4 by most merchants is lower than the other ways of reducing friction that are listed above. Integrate easily and add dynamic Pay in 4 messaging with just a few lines of code.

Bottom line: New Innovative Payment Options Boost E-commerce Sales

E-commerce firms must ride industry and consumer trends successfully to continue to thrive. This means adapting to current market conditions as well as to specific customers’ needs to achieve sustainable growth.

Those who aim at directly reducing one of the largest sources of conversion friction — given it is one of the most significant sales performance advantages available to most merchants today — is an easier option for most e-commerce sites today.

Payment options such as PayPal Pay in 4 are leading examples of trusted payment options likely to drive growth in sales and customer acquisition/retention through offering shoppers more economic flexibility in a highly consumable way.

Learn more about PayPal’s buy now pay later solutions.

Additional Reading

A New Digital Experience Maturity Model for Improved Business Outcomes

How CXOs Can Attain Minimum Viable Digital Experience for Customers, Employees, and Partners

The Digital Transformation of Back-End Customer Experience: What Leaders of The New C-Suite Are Thinking

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Big Idea: ESG Solutions Address the Impending ESG Imperative

Big Idea: ESG Solutions Address the Impending ESG Imperative

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17 UN SDGs

Managing the Shift From Shareholder Capitalism to Stakeholder Capitalism

In 2015 all 193 United Nations (UN) member states adopted the 2030 Agenda for Sustainable Development—a framework that “provides a shared blueprint for peace and prosperity for people and the planet, now and into the future.” One milestone was a collection of 17 Sustainable Development Goals (SDGs) designed to fight and end all forms of poverty, inequality, and climate change. The intent was for all countries—from the poorest to the richest—to take action, protect the planet, and promote economic prosperity while ending poverty. Each country was expected to participate, with national frameworks and review at the global level. Although these SDGs are not legally binding, many activist investors have decided to incorporate the goals in their reporting requirements, and many organizations have begun efforts to shift corporate social responsibility (CSR) programs into ESG programs.

With the 193 UN member states all creating their own frameworks and thousands of asset managers and investors applying their own unique approach, the overall ESG efforts require a level of standards definition, data collection, data harmonization, and reporting. This, in turn, has created massive opportunities for technology providers and system integrators able to develop solutions to address these challenges.

An onslaught of massive regulations expected by governments around the world has added to this complexity, creating two massive markets—one for ESG metrics reporting and a bigger one for ESG enablement and solutions.

Constellation forecasts that the market size for ESG metrics reporting will be 1.425 billion by 2026, with a compound annual growth rate (CAGR) of 17.3%. Constellation expects that the ESG enablement and solutions market for the same period will reach well over $2.216 trillion. Constellation breaks down these software offerings and solutions into the three ESG buckets: environment, social, and governance.

Environment

Affordable and clean energy
Circular economy and PLM
Decarbonization
Environmental accounting and finance
Smart spaces
Supply chain resiliency

Social

Consumer protections and privacy rights
Decentralization
Diversity, equity, and inclusion
Employee health, safety, and wellness
Human rights
Multisided data networks
Skills, talent development, and continuous learning
Tech for good

Governance

AI and digital ethics
Compliance and risk mitigation
Chief sustainability officers
Cybersecurity and information governance
Data privacy
Employee relations
Executive compensation
Joint venture startups and partnerships

Twenty Business Trends Prioritized By Business Impact And Organizational Adoption

From extreme weather to privacy, cybersecurity threats to regulatory pressure, and demographic shifts to changing social norms, the ESG market has never been so dynamic or so volatile. Board-level members must navigate rising pressure from investors and asset managers along with the hodgepodge of complexity from a deluge of regulatory requirements. Consequently, new initiatives for achieving ESGs present an opportunity for improving regulatory compliance, operational efficiency, revenue growth, market differentiation, and impact on the organization’s brand.

The latest Constellation AstroChartä identifies 20 significant business trends and ranks them by business impact and organizational adoption (see Figure 1)
 

Figure 1. . Constellation’s AstroChart: Trends in ESGs Show Business Impact and Organizational Adoption

Big Idea ESG imperative

Source: Constellation Research, Inc.

The full report can be found on the Constellation Research website.

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News Analysis: Unpacking CCP China's Crypto Crackdown

News Analysis: Unpacking CCP China's Crypto Crackdown

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 CCP China Cryptocurrency Ban

From Crypto Friendly To Crypto Non Grata

The policy makers in the CCP now consider cryptocurrencies as a considerable threat to CCP China's quest to become both a global reserve currency and an opportunity to dethrone the dollar.  Just a few years back, the CCP government may have thought that crytpos would help unseed the dollar, but something has changed in the party's calculus.  In fact, they now see that cryptocurrencies are a much bigger threat to the yuan and have decided to protect the yuan at all costs.

Given the recent crack down on the highly successful  entrepreneurs, backlash on profits in industries such as for-profit education, and push for social justice in CCP China, these latest measures may appear aligned with the current ideology.  However, this crackdown also plays a secondary role.  The government continues to clamp down on outflows of currency.   For the past decade, citizens have found ways to move their cash out of the country through large real estate purchases, mergers and acquisitions, SPACs, and art and antiquities trading. Stopping cryptos and NFT’s takes out another vehicle to move money out of the country.  All citizens have left are art works and antiquities for high value transfers of cash.

The crack down as announced by the People's Bank of China shows an extensive amount of coordination at the highest levels. Every department from finance to tech, to public security, to telecom are working to stop crypto trading in China.  As a result, crypto stocks for miners and trading such as Bit Digital, Coinbase, Marathon, and Riot have taken a beating along with cryptos other than Bitcoin. In general, traders dumped coins and digital assets that posted better long term profits than bitcoin. 

The Bottom LIne: Key Components Of The Metaverse Economy Will Grow With Or Without CCP China

China's ban only delays the inevitable. The defi movement and cryptocurrencies demonstrate how and why individuals will conduct business outside of central banks.  Intermediaries that do not add value in a financial transaction will be eliminated.  Moreover, the Metaverse economy is powered by cryptos.  As adoption grows, a ban by China will eventually lead to digital isolation as citizens find workarounds for more efficient approaches.

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Crisis/Incident Management in the Digital Era

Crisis/Incident Management in the Digital Era

When it comes to crisis and incident management in the cloud/digital era, HOPE IS NOT A STRATEGY!

An Incident is defined as unplanned downtime, or interruption, that either partially or fully disrupts a service by offering a lesser quality of service to the users. If the Incident is major, then it is a crisis!

When it starts to affect the quality of service delivered to the customers, it becomes an issue, as most service provides have service level agreements with the consumers that often have penalties built in.

As I continue my research in these areas, and after talking to multiple clients, I have come to the realization that most enterprises are not set up to handle IT-related incidents or crises in real time. The classic legacy enterprises are set up to deal with crises in old-fashioned ways, without considering the Cloud or the SaaS model, and social media venting brings another quirk. Newer digital native companies do not put much emphasis on crisis management, from what I have seen.

Especially with the need and demand for "always-on," opportunities are more than ever to break, and incidents do not wait for a convenient time. Problems can, and often do, happen on weekends, holidays, or weeknights when no one is paying attention. When an incident happens, a properly prepared enterprise must be in a situation to identify, assess, manage, solve, and effectively communicate it to the customers.

Another key issue to note here is the difference between security and service incidents. A security incident is when either data leakage or data breach happens. The mitigation and crisis management there involves a different set of procedures from disabling the accounts to notifying stakeholders and account owners and escalating the issue to security and identity teams. A service incident is when a service disruption happens, either partially or fully. It needs to be escalated to DevOps, developers, and Ops teams. Since they are similar, some of the crisis management procedures might overlap. But if your support teams are not aware of the right escalation process, then they might be sending critical alerts up the wrong channel when minutes matter in a critical situation. For the sake of this article, I am going to be discussing only service interruptions, though a lot of parallels can be drawn to a security incident as well.

Avoid incidents when possible

Avoidance is better than fixing issues in any situation. There are many things an enterprise can do to avoid situations, such as vulnerability audits, early warning monitoring, code profile audits, release review committees, anomaly detection, etc. One should also invest in proper observability, monitoring, logging, and tracing solutions. I have written many articles on those areas as well; they are too complex to cover in detail here.

Prepare for the unexpected

With most enterprises, there is no preparation or plan of action when an incident happens. In the digital world, incidents do not wait around for days to be solved or managed. If you let social media take over, it will. Sometimes it can even have a mind of its own. When you are not telling the story, the social media pundits will be telling your story for you.

Identify the incident before others do

I wrote a few articles on this topic. In my latest article, "In the digital economy, you should fail fast, but you also must recover fast," I discuss the need for speed to find issues faster than your customers or partners can. Software development has fully adopted the DevOps and agile principles, but the Ops teams have not fully embraced the DevOps methodologies. For example, the older monitoring systems, whether they are application performance monitoring (APM), infrastructure monitoring, or digital experience monitoring (DEM) systems, can also find if there is a service interruption fairly quickly. However, identifying the microservice that is causing the problem, or the changes that went into effect that caused this issue, seem to be complex in the current landscape. I have written about the need for observability and for finding the issues faster at the speed of failure repeatedly.

Act quickly and decisively

When major incidents happen, it should be an all-hands on deck situation. As soon as a critical incident (Sev. 1) is identified, an incident commander should be assigned to the incident, a collaborative war room (virtual or physical) must be immediately opened, and proper service owners must be invited. If possible, the issue must be escalated immediately to the right owner who can solve the problem rather than going through the workflow process of L1 through L3, etc. In the collaborative war room, often finger-pointing and blaming someone else is quite common, but that will delay the process further. In addition, if too many people are invited to these collaborative war rooms, there has to be a mechanism to identify mean-time-to-innocence (MTTI) so anyone who is invited can continue their productive work by leaving if they are not directly related and cannot assist in solving the issue.

Own your story on your digital channels.

When a severity 1 or a major service interruption happens, your users need to know, your service owners need to know, and your executives need to know. In other words, everyone who has skin in the game should know. Part of it would be external communication. At a very minimum, there has to be a status page that will display the status and quality of service, so everyone is aware of the service status all the time. In addition, an initial explanation of what went wrong, what are you doing to fix it, and with a possible ETA should be posted either as a status update or on regular posts on LinkedIn, Twitter, Facebook, and other social media platforms where your enterprise brand is present. Going dark on social media will only add fuel to the fire. Your users know your services are down. If they get no updates from you, speculators, or even competitors, will spread rumors to ruin your brand.

This is where most digital companies are weak as they are not prepared, which can make or break an SMB enterprise. Real-time crisis and reputation management are crucial in those critical moments while engineers and support teams are trying to solve the problem. It is also a good idea to use sentiment analysis and reputation tools to figure out who is saying extremely negative things and to try to either take them offline to deal with them directly or respond in kind to avoid further escalation.

Do a blameless post-mortem

A common pattern I see across organizations is after the crisis is solved and the incident is fixed, everyone seems to move on to the next issue quickly. It could be because there are too many issues that the support, DevOps, and Ops teams are overwhelmed, or they do not think it is necessary to analyze what or why this happened. An especially important part of crisis/incident management is to figure out what went wrong, why it went wrong, and more importantly how can you fix this once and for good, so this will not happen ever again. After figuring out a solution, document it properly. You also need to have a repository to store these solutions so in the unfortunate incident that it happens again, you know how to solve this quickly and decisively.

Follow-up

In addition, discuss the situation with your top customers who were affected by it, what you did to solve the issue, how you fixed it so it will not repeat, but more importantly, discuss how you were prepared for the incident before it happened. This instills huge confidence in your brand. Not only will you not lose customers, but you will get more because of how you handled it.

In addition, the general advice from crisis management firms would be to cancel any extravagant events that are planned in the immediate future. If your critical services were down for days, but your executives were having a huge conference in Vegas, the social media world would be at it for days. Monitor social media platforms (LinkedIn, Twitter, Facebook at a minimum or whatever other social media platforms your company has a presence on, including negative comments on your own blogsites) for tone; you can even use AI-based sentiment analysis tools to identify still unsatisfied customers to discuss their concerns and how you can address them. Until these concerns are addressed, your incident is not completely solved.

Another best practice would be to avoid hype content or marketing buzz for a while after a major incident happens. I have seen companies go on with the plan and get a backlash from customers that they are all talk and nothing really works.

Conclusion

Let's face it: every enterprise is going to face this sooner than later. No one is invincible. The question is, are you ready to deal with it when it happens to you? The ones who handle it properly can win the customers' confidence, showing they are prepared to handle future incidents if they were to happen again.

Do you earn your customers' trust by doing this the right way, or do you lose it by botching and covering this up? That will define you going forward.

At Constellation research, we advise companies on tool selection, best practices, trends, and proper IT incident/crisis management setup for the cloud era so you can be ready when it happens to you. We also advise the customers in the RFP, POC, and vendor contract negotiation process as needed.  

 

 

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HOT TAKE: Intuit Ran the Numbers and Email Won Big

HOT TAKE: Intuit Ran the Numbers and Email Won Big

Those of you who know me know that this statement is not one to be taken lightly: this news left me speechless. RIGHT??? Doesn’t happen often. And it was only for a moment. But when I first heard the news that Intuit had agreed to buy the notoriously bootstrapped email marketing platform Mailchimp for $12 Billion in cash and stock, I was flabbergasted. I was flummoxed. I was ALL of the old-timey feelings for utterly confused.

That is until I remembered this one line from a keynote I once watched: “I'd like to see business go back to a model where everybody believes that marketing is the center of what every company has to do.”

It was 2003 and it was the first time the CMO Council had gathered for what would become an annual event. The keynote address was delivered by the Chairman of the Board at Intuit…the former CEO with “humble roots” as a CMO. Bill Campbell didn’t just believe marketing was important. He truly believed that real marketing—the act of a brand engaging with and telling shared stories with a customer—should drive growth.

I honestly had not thought about that line from Campbell’s keynote until I read the Twitter statement from current Intuit CEO, Sasan Goodarzi, on the decision for the acquisition: “Together, we will deliver an innovative customer growth platform to help our customers grow and run their businesses with confidence.”

So let’s get into the weeds on this one. Intuit has officially announced plans to acquire bootstrapped mail phenom, MailChimp. Headquartered in Atlanta (which Mailchimp CEO Ben Chestnut has already dubbed Intuit’s east coast hub) with a roster of over 13 million users, Mailchimp represents a growth-driving solution for an SMB market that was ravaged in the pandemic.

A report from Intuit Quickbooks noted that in April 2020 alone, SMBs lost $4.6 billion in monthly revenue. Goodarzi is apparently betting that by binding a growth engine like marketing automation to back office finance resources, SMBs will regain pre-pandemic confidence in growth and business.

But the biggest hint as to WHY this acquisition happened isn’t in the power of the platforms being brought together or even Intuit buying its customer base a giant $12 billion dollar band-aid. The purchase driver is in the data…and they pretty much said so. In fact in an investor call held on Monday September 13, Goodarzi noted that Mailchip sits on “a lot of customer data. We (Intuit Quickbooks) have all the purchase data.”

This telegraphs, in a pretty direct and loud manner, that this move isn’t just to benefit Quickbooks, or even Intuit’s SMB customer base. This is a data and intelligence service play for enterprises that often struggle to gain access to intelligence based on customer behavior and customer transaction intelligence.

I’ll wait for everyone to search for books on “CMO / CFO Alignment”…yeah…there aren’t any…yet. But don’t be shocked if someone at Intuit releases one soon.

But maybe that’s where Intuit has been all along. Afterall, they had, at their helm for many years, a coach and a leader who was one of the first CMOs to step into a CEO role without so much as breaking a sweat.

What Intuit has done has shifted the center of gravity of a “business graph”—something Ray has been poking people on for years now— that is purpose-built to make better decisions at both speed and scale. (Check out this podcast where Ray breaks down the value of a business graph: https://lochhead.com/ray-wang-2/) Transaction and account data alone was never going to get there…the graph demands a massive amount of data on customer event and behavior…an overflowing firehose of data that…ohhh I don’t know…a sales and marketing engagement and automation engine like Mailchimp can provide. It is about helping business leaders make better, and perhaps as the Intuit Quickbooks Mailchimp Customer Intelligence (name totally made up for the record) solution moves farther down the AI path, more automated decisions.

So, does this mean H&R Block is suddenly in the market for a sales and marketing engagement tool. Dear lord I hope not. But, it sure shines a spotlight on solutions like Zoho One with its business operations platform for small business. What this ALSO means is that customer engagement engines need to innovate and advance quickly on just how their data can do more than parrot back campaign success metrics, CTRs and opens.

No matter where this new marriage leads: to a high powered decision velocity machine built to accelerate the path from micro to small to mid-sized business, or into a whole new realm of business intelligence for Intuit, there is one thing I know for sure: Campbell, who passed in 2016, is sitting back on a spiritual football or rugby field somewhere, having a pretty good laugh.

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